The Chamber of Deputies of Brazil approved, in the early hours of Wednesday, Bill Complementary 128/2025, which increases the tax burden on online betting companies. The vote registered 310 votes in favor and 85 against, consolidating a reform that significantly modifies the sector’s taxation.
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The bill, presented by deputy Aguinaldo Ribeiro, establishes a progressive increase in the tax on gross gaming revenue (GGR). Currently set at 12%, the tax will reach 15% in three years: 13% in 2026, 14% in 2027, and 15% in 2028. The three-percentage-point difference will be mandatorily allocated to social security.
Brazil with three parallel proposals
This project arises in a context where the betting market in Brazil faces multiple simultaneous regulatory initiatives. In addition to PLP 128/2025, Congress is analyzing the Anti-Faction Bill (5582/25), which proposes the creation of the Cide-Bets tax, with a 15% levy on deposits, along with a Special Regime for Foreign Exchange and Tax Regularization.
The Security Amendment (18/25) proposes a 6% increase in GGR, while Bill 5473/25 establishes progressive adjustments to reach 18% by 2028. This multiplicity of proposals reflects the government’s urgency to regulate a sector that has grown exponentially without adequate fiscal regulation.
Negotiation with the government
The Brazilian Ministry of Finance exerted considerable pressure to modify the original bill, which initially reduced federal tax benefits by 10%. The initial proposal contemplated raising the rate from 12% directly to 18%.
After intense negotiations and an impact report from the Federal Tax Service, rapporteur Ribeiro and Treasury representatives agreed on the gradual increase to 15%. This consensus allowed the vote to proceed and maintain the necessary parliamentary support.
New distribution of resources
Article 9 of the bill modifies Law 13.756/2018, redefining how sector revenues are distributed. Once approved, 85% of the revenue will be allocated to the operating agent’s operational expenses, 3% to social security, and 12% to other purposes established by law.
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The implementation will be staggered. In 2026, the distribution contemplates 87% for operational expenses and 1% for social security. In 2027, these percentages will change to 86% and 2%, respectively, until reaching the final distribution in 2028.
Joint liability against illegal operators
The text includes provisions to combat illegal betting. It establishes joint liability for companies that advertise unauthorized operators, including non-payment of taxes and prizes. Financial institutions and payment providers that do not adopt restrictive measures against illegal sites may also be held liable.
“Our intention is to curb the proliferation of illegal and dishonest gambling that exploits the vulnerabilities of the population, especially those with low incomes,” explained Ribeiro, justifying the new measures.
What’s next
After approval in the Chamber of Deputies, the bill must be voted on in the Federal Senate. An agreement with the President of the Senate, Davi Alcolumbre, contemplates including the proposal in Wednesday’s Order of the Day.
The tax contribution will be calculated and collected monthly by the operators, according to the regulation of the Federal Revenue Service of the Ministry of Finance, following the responsibilities established in article 2 of Law 9.003/1995.
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